EU 2022-23 corn imports at three-year highs

EU corn imports hit three-year highs over the first five weeks of the 2022-23 marketing year as prospects of lower domestic production this year spur buyers to increase their purchases from the global market.

EU corn imports rose to 1.62mn t in weeks one to five of the 2022-23 marketing season that started on 1 July, compared with 1.23mn t in the previous year and the highest from 2019-20, when 2.13mn t of product was imported, according to preliminary data from the European Commission (see chart).

EU buyers ramped up corn purchases in light of worsening domestic production outlook this year, with hot and dry weather conditions last month affecting the yield potential in many producing countries.

The commission revised its projection for EU corn production in 2022-23 down sharply to 65.8mn t from 71.7mn t expected in June and compared with output of 72.7mn t last year. And the US Department of Agriculture's Foreign Agricultural Service (USDA FAS) reduced its projection of the EU's 2022-23 corn production even lower - by 3.5mn t from its April estimate to 64mn t.

Lower expected corn production contributed to higher EU corn import projections for 2022-23, at 16mn-16.5mn t, which is almost in line with the previous marketing year. Ukraine and Brazil are the best placed suppliers to cover the EU 27's large import corn requirements this marketing season, given large export supply availability expected in both countries, competitive prices for products and prospects of the resumption of Ukrainian sea exports after signing the grain corridor deal.

Ukraine has been the largest corn supplier to the EU since the start of the current marketing year - at 749,200t, accounting for 46.2pc of overall volumes imported so far - closely followed by Brazil with 688,000t, or 42.4pc.

Common wheat exports up

EU common wheat exports in the first five weeks of the 2022-23 marketing season reached 1.77mn t, ahead of last year's pace of 1.57mn t, which was driven by higher demand from the global market at a time of restricted supplies from Ukraine and Russia.

Weekly exports fell to only 89,900t in the week to 31 July, sharply down from 635,500t a week ago and 531,900t two weeks before. This could be explained by the incomplete data for some major exporting countries, meaning that cumulative figures for common wheat volumes exported from the EU so far this season could be even higher.

Romania has been the biggest wheat supplier from the bloc so far this season, with cumulative shipments at 474,900t, followed by France and Poland, with 453,600t and 354,600t, respectively.

By Victoria Blazhko

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